DALLAS, Nov. 10, 2020 /PRNewswire/ -- The seniors housing industry has been one of many deeply affected by the COVID-19 pandemic, and the most recent published articles have detailed the difficulty in securing financing and getting transactions across the finish line in 2020. New developments have slowed to a crawl, with the near-term focus shifting to value-driven acquisitions. The cost of operations has increased to accommodate COVID-related infection control precautions, a necessity amid a market slowdown. As a result, many owners and investors have made strategic shifts in their 2020 activity, tabling ground-up projects until things improve. This has not been the case for Dallas-based MedCore Partners. Together with The National Realty Group and Asaz, Ltd., their Houston-based co-development partners, and ACRON, their U.S. and Switzerland-based real estate investment partner, MedCore is not waiting around for seniors housing to eventually right itself.
"This year has been an unexpected challenge for all of us, to be sure," said Michael Graham, one of the founders at MedCore. "But we aren't happy to wait anything out. In fact, we've doubled down on getting our planned developments off the ground. It's a great opportunity to bring new product to market in 12-24 months when other development activity around the country is just starting back up again." Graham pointed out that in a year where MedCore also closed two senior living acquisition deals – a single asset back in February and a seven-asset transaction in July for a combined valuation of $120 million, this type of velocity wouldn't have been possible without the other firms.
The four groups contend that part of their success in closing large development deals during COVID is their collective strength and commitment. Each group possesses different areas of expertise which combine to make a balanced, focused team of professionals with a singular focus. They all agree, for example, that the location must be exceptional for visibility and in markets less susceptible to setbacks.
ACRON USA is the domestic arm of the ACRON Group, a Switzerland-based real estate manager with a number of high net worth clients seeking opportunistic investments across multiple sectors. "At ACRON, our growth strategy is measured and consistent," said Greg Wilson, President of ACRON USA's Tulsa office. "Whether it's in the hospitality industry, multi-family sector, or seniors housing, ACRON offers the advantage of first-class assets, top-of-market properties, and prime projects in the world's most resilient locations." Wilson feels this investment strategy is one of several things that has kept the firm nimble and busy during COVID. "We're grateful to be partnering with MedCore, TNRG and Asaz on our senior living projects, and we see ACRON continuing to look to the senior living industry as a go-to sector for our clients."
This year has indeed been busy for the three firms. Together, since March, they have closed on two senior living developments with total project costs exceeding more than $130 million. The first, Sooner Station at University North Park in Norman, Oklahoma, features 189 independent living, assisted living and memory care residences in a unique collaboration with the University of Oklahoma's Alumni Association. The second project to break ground during COVID was The Hacienda at Georgetown, a state-of-the-art, 13-acre resort-style senior campus at the south entrance to Sun City Georgetown, a rapidly growing senior community 30 minutes north of downtown Austin.
It is not clear what 2021 and beyond holds for the seniors housing industry, especially from a development perspective. However, resourceful groups like MedCore, TNRG, Asaz, and ACRON certainly understand that the worst possible solution to the current economic and health care environment is to stand by and wait. They believe forging ahead is the right thing to do, especially for seniors and their families.
For more information about MedCore, TNRG, ASAZ, or ACRON, please explore the links and information below.
Asaz, Ltd. (ASAZ) is a privately-owned investment firm helping developers nationwide successfully complete projects. Over the past 21 years, Asaz has financed projects in the healthcare, seniors housing, multi-family, student housing, and hospitality industries.
SOURCE MedCore Partners